Accounting Information Systems: The Processes and Controls, 2nd Edition

SUMMARY OF STUDY OBJECTIVES

An introduction to auditing IT processes. Nearly all companies use computerized systems to conduct business and account for business activities, and many businesses are overwhelmed with the volume of computerized data available for reporting and decision-making purposes. In light of this heightened volume of information and level of information processing, the audit function is as important as ever in improving the quality of information available to decision makers.

The various types of audits and auditors. The three primary types of audits include compliance audits, operational audits, and financial statement audits. Audits may be conducted by CPAs, internal auditors, IT auditors, or government auditors.

Information risk and IT-enhanced internal control. Information risk is the chance that information available to decision makers may be inaccurate. Information risk may be reduced through the use of information that has been audited. Auditors rely on both manual and computer controls to reduce information risk. Computer controls often compensate for weaknesses in manual controls.

Authoritative literature used in auditing. Audit guidance is found in generally accepted auditing standards, as well as standards issued by the Public Company Accounting Oversight Board, the Auditing Standards Board, the International Auditing and Assurance Standards Board, and the Information Systems Audit and Control Association.

Management assertions used in the auditing ...